Secured Creditor's Security Interest Becomes Part Of Liquidation Estate If Amount As Stipulated Under Regulation 21A(2) Is Not Deposited Within 90 days: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that If a secured creditor who has chosen to realize its security interest under Section 52 of the Insolvency and Bankruptcy Code, 2016 (Code) fails to deposit the amount as stipulated under Regulation 21A(2) of the...

IBC | Once Resolution Plan Approved, Dues Not Part Of It Get Extinguished : Supreme Court Rejects Post-Resolution Income Tax Demand

The Supreme Court today (March 20) declined a claim raised by the Income Tax Department to include a tax demand in a Resolution Plan after it was approved by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016 (IBC).Citing the case of Ghanashyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Ltd. (2021) 9 SCC 657, which held that all claims not...

Delivery Of Demand Notice To Last Known Address Of Personal Guarantor Shall Be Deemed Valid Service U/S 95(4) Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that delivery of a demand notice to the last known address of the personal guarantor, as stipulated in the deed of guarantee, shall be deemed valid service for the purposes of Section 95(4) of...

Corporate Revival Under IBC Should Not Come At Cost Of Public Welfare Projects: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai comprising of Ms. Reeta Kohli, Hon'ble Member (Judicial) and Ms. Madhu Sinha, Hon'ble Member (Technical) dismissed an application filed by Aegis Resolution Services Private Limited acting as the Resolution Professional (RP) for Radius and Deserve Land Developers Private Limited. The application was filed against the Slum...

Application U/S 9 Of IBC Cannot Be Admitted When Debt Is Discharged By Corporate Debtor After Receipt Of Demand Notice: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that Insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) cannot be initiated if the debt in question has been discharged and settled between the parties...

Allottee Cannot Be Considered Financial Creditor When Allotted Unit Is Cancelled At Their Request: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that an allottee of a unit cannot be considered a financial creditor if the allotted unit was canceled at their request and the loan taken to purchase the flat was settled with the lending bank. Brief Facts: Gaurav...

NCLAT Dismisses Senior Advocate's Plea Over Non-Payment Of Over ₹6 Crore In Fees By Company, Says Pre-Existing Dispute Bars Initiation Of CIRP

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, consisting of Justice Ashok Bhushan (Chairperson) and Arun Baroka (Member - Technical), dismissed an appeal arising from the final order by the NCLT New Delhi Bench-IV regarding the initiation of CIRP under Section 9 of the Insolvency and Bankruptcy Code (IBC).The appeal was filed by a Senior...

Adjudicating Authority Can Extend Time For Payment Of Sale Consideration Beyond 90 Days U/S 35 Of IBC Read With Rule 11 Of NCLT Rules: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that the 90-day period for payment of sale consideration under Schedule 1, Clause 1(12) of the Liquidation Regulations, 2016, is mandatory and can only be extended by the Adjudicating Authority,...

CoC Cannot Remit Approved Resolution Plan Post-Submission To Adjudicating Authority: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench comprising Justice Ashok Bhushan (Chairperson), Barun Mita (Technical Member) and Arun Baroka (Technical Member) have held that once a resolution plan has been approved by the CoC and submitted to the Adjudicating Authority, the CoC cannot seek remit it back to the CoC for fresh...

Information To The NeSL/Information Utility Is Not Mandatory For Ascertainment Of Default: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench of Ms. Reeta Kohli, Member (Judicial) and Ms. Madhu Sinha, Member (Technical) admitted the Section 7 application filed by Asset Care and Reconstruction Enterprise Ltd on seeking to initiate Corporate Insolvency Resolution Process against Rajesh Buildspace Private Limited due to default in payment of...

Resolution Plan Can Be Approved Beyond 330-Day Time Limit If There Are Valid Grounds For Extension: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, consisting of Justice Ashok Bhushan (Chairperson), Barun Mitra (Member - Technical), and Arun Baroka (Member - Technical), dismissed an appeal arising from an order by the NCLT Ahmedabad Bench-II regarding the initiation of CIRP under Section 9 of the Insolvency and Bankruptcy Code (IBC). The tribunal held...

While Deciding Application U/S 7 Of IBC, Adjudicating Authority Is Not Required To Interfere With Terms Of Contract Between Parties: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that while dealing with an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (Code) neither the Adjudicating Authority nor the Appellate Authority is expected to interfere with the terms of the...